Report about the Rise and the Fall Nokia:(case study)

What are the opportunities for Economies of Scale and Economies of Scope for NOKIA during the RISE AND THE FALL of this company? Explain

At what level of output is profit maximized for a perfectly competitive firm? Why will the firm not produce this level of output? Explain

Suppose there are two goods in an economy, X and Y. Prices of these goods are Px and Py, respectively. The income of the only agent (consumer) in the economy is I. Using this information, answer the following questions:

a. Write down the budget constraint of the consumer. Draw it on a graph and label the critical points accordingly. Provide a verbal explanation of why all income is spent, mentioning the underlying assumption for this outcome.

b. Define substitution and income effects.

c. Assuming both goods are normal, suppose Px goes down due to an excess supply of good X, whereas Py is held constant. Drawing a graph, show the substitution and income effects as well as the total effect of this price reduction. Explain the change in demands for the goods using the relation, where MU represents marginal utility. Be precise in labeling your graph and its step-by step explanation.

MUx / Px = MUy / Py

d. Looking at the sign of the total effect, discuss the relation between the price of a normal good and its demand.

e. Now suppose X is an inferior good. How does your answer to part (c) change? Drawing a new graph, comment on the signs of the substitution and income effects.

f. What is Giffen paradox? Drawing a new graph, discuss it in terms of the magnitudes of the substitution and income effects. How is the demand for a Giffen good sloped? Why? Provide the necessary definitions and explain it using the signs and magnitudes of substitution and income effects.

1. Name of the product: Strabucks Frappucino Drinks
2. Question:  Target Market - Describe the target market using market dimension variables. These are segmentation variables such as demographic, psychographics, behavioral or geographic. Only two or three sentences to precisely describe the typical user using these variables.

Share your view about any four (4) critical infrastructures that require continuous professional development.

A series of 10 end-of-year deposits is made that begins with $6,500 at the end of year 1 and decreases at the rate of $300 per year with 8% interest.

a. What amount could be withdrawn at t = 10?

b. What uniform annual series of deposits (n = 10) would result in the same accumulated balance at the end of year 10?

I would like to be able to use excel functions to solve this rather than by hand. Thanks!

(a) Outline and explain in detail four types of market failure. What types of problems do market failures give rise to in the economy? Please give an example for each of the market failures you have outlined. Diagrams are not required in this question. 30 marks

(b) Does market failure automatically mean that the government should intervene to deal with the problem? Explain your answer. This question refers to market failure as a whole and not to a particular type of market failure.10 marks

1. Consider the Solow model of economic growth, with no technological progress. Assume that δ=0.07 and n=0.03. The production function is given by Y=K^0.5 L^0.5. The savings rate s=0.5.
   

a) Calculate the steady state levels of capital per worker, output per worker and consumption per worker.

b) Now, suppose there is an exogenous change in n, which increases to n=0.055 (while δ, s and the production function remain identical). What are the new steady state levels of capital per worker, output per worker and consumption per worker?

c) Use the Solow diagram to depict the effects of the change in n on steady-state capital per worker

d) After the change in n, is it possible for the economy to go back to the level of steady-state consumption per worker that it had before the change in n by changing its savings rate?

• How does the US tax system foster inequality and effect the economy and market structures? Do you agree or disagree with the need to change the tax system? Do you think changing the tax system is possible in the current political economy? How will the tax bills which passed recently by the Senate and Congress effect your taxes? How will the effect inequality? What are your suggestions?

1. Consider the aggregate demand/aggregate supply model of Chapter 10. Assume that the long-run aggregate supply curve is vertical at Y = 3,000 while the short-run aggregate supply curve is horizontal at P = 2. The aggregate demand curve is given by Y = MV(1/P), with M = 6,000 and V=1.
   

a) Suppose that there is an adverse supply shock that shifts the short-run supply curve upwards, to P = 3. What are the values of P and Y in the short-run equilibrium after this shock?

b) What changes (if any) in the values of P and Y would take place going from the short-run equilibrium of part A to the long run (assuming no other shocks occur)?

c) If the FED wants to avoid any changes in the level of Y as a response to the supply shock, what should be the change in the quantity of money M?

A company decided to choose between two projects based on the shorter discounted payback period at an interest rate of i=10%. Both projects will have a service life of 6 years. Project A needs an initial investment of $20,000 and will generate a net cash flow in years 1 through 6 of $6,500. Project B needs $17,500 to invest initially, and will have a variable net cash flow as follows: $1,500 in year 1, $3,000 in year 2, $4,500 in year 3, $5,000 in year 4, and $7,000 each in years 5 and 6.Which project will the company choose and what is its discounted payback period?

1. Firm A and Firm B make identical products. Industry demand is Q = 90 - P. Both firms have a constant marginal cost of $30. There are no capacity constraints. a) Solve for the equilibrium price and quantity produced under Bertrand-Price model of competition. How much profits would they make? ii) Cournot-Quantity model of competition. How much profits would they make? b) Suppose that firm A is considering whether to invest in research and development that would lower its marginal cost to $15. How much would firm A be willing to pay for this research assuming 1) Cournot-Quantity model of competition 11) Bertrand-Price model of competition. Hint: solve for the equilibrium when A has a MC =15$ and B has a MC of $30 and compare the profits that you have found in part a) where they both had MC of $30 c) Now assume that Firm A has a capacity constraint of 30 units of production and Firm B has a capacity constraint of 20 units. In a Bertrand-Price competition model would the Bertrand - paradox hold? What would be the equilibrium price? How much profits would the firms earn?

Suppose that output Q is produced with the production function Q = f(K,L), where K is the number of machines used, and L the number of workers used. Assuming that the price of output p and the wage w and rental rate of capital r are all constant, what would the profit maximizing rules be for the hiring of L and K?
(b) What is the MRTSK,L for the following production function: Q = 10K4L2? Is this technology CRS, IRS or DRS? How do you know?
(c) If the production function was Q = 4KL1/2, what are the conditional demand functions for K and L? Find the cost function C(w,r,Q) for the production function in part (a). Show 3 general properties of cost functions hold for this cost function. (d) Suppose you know the cost function is C(w,r,Q) = 2wQ + rQ 2 . Can you determine the returns-to-scale of the technology? If so, what is it?